It is common for manufacturers or retailers to provide incentives to potential purchasers or lessees in order to increase the sale or lease of an item. Particularly with respect to the sale or lease of automobiles, manufacturers have offered lowered interest rates on financing, rebates and extended warranties in an attempt to increase sale or lease of one or more classes of automobile.
One typical problem faced by purchasers or lessees of automobiles, in particular, is obtaining insurance for the automobile at the time of sale or lease. The buyer must typically complete many forms to obtain the insurance. Such a process may deter the buyer from completing the sale or lease. Furthermore, the characteristics of the purchaser, such as the age, sex, marital status, area of residence, vehicle usage, the number of drivers living with the buyer and the make and model of the car purchased are all considered by an insurance provider to determine a rate for an insurance premium for the insurance policy sought. The cost of the insurance policy may be prohibitive, thereby impacting sale or lease of that class of automobile.
In order to address the problems in obtaining insurance, some automobile retailers have offered to provide basic insurance coverage with the sale or lease of the automobile. However, the premium for the buyer is still evaluated using all of the characteristics identified above, which may result in insurance premiums which are prohibitive for the party receiving the policy. Furthermore, under such programs, the buyer must still complete many forms in order to receive the insurance and must pay a percentage of the premium in advance in order to complete the sale or lease of the vehicle in accordance with certain state laws.